Question
As the budget director for a town in the northern United States, you need to purchase new snow plowing equipment before the next winter season.
As the budget director for a town in the northern United States, you need to purchase new snow plowing equipment before the next winter season. You sent out a request for proposal (RFP) and three companies gave you information on their plows including purchase costs and annual operating maintenance expenses. Venus Corporations proposal costs $400,000, and $100,000 annually for 5 years Mars Corporations proposal costs $500,000, and $75,000 annually also for 5 years and Jupiter Companys proposal costs $300,000 and $125,000 annually for 5 years. The town uses a cost of capital of 6%. Which companys proposal should you accept? A. Venus Company B. Mars Corporation C. Jupiter Company
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